Pennsylvania budget deficit passes $3B mark - Pittsburgh Business Times:

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billion in the curren fiscal year. The state also expects no growth in revenurein 2009-10 and mandatory cost increasesa including public welfare, medical assistance and other itemz of $421 million ($145 million in 2008-0 and $276 million in Budget Secretary Mary Soderberg told stat e legislative leaders in a lette r Thursday. The recession is causing, amonf other things, increased demand for services provided by statew Department of Welfare and Department of Aginbgand Long-Term Living. The larger anticipated shortfall putsboth Gov. Ed Rendell’sa $29 billion budget, proposed in February, and the $27.
3 billionh Republican Senate counterproposal made last month out of The Republican proposal was rejected in a 20 to 14 vote by the Housw Appropriations Committeeon Monday. “The national recession has led to a crisixs in our revenues andour spending, and we all have to work even hardere now to pass a balancede budget,” Soderberg said in a letter to Housw and Senate leaders. “Federal stimuluse funding from the Americahn Recovery and Reinvestment Act of 2009 will be a help this year and but cannot close the dramativc budget gapwe face.
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